UBS Group AG UBS has confirmed its agreement to pay $1.44 billion to the Department of Justice over allegations surrounding its residential mortgage-backed securities dealings from 2006 and 2007.
The dispute originated from the bank’s issuance, underwriting and sale of these securities, Bloomberg reported Monday. The DOJ, in 2018, initiated a lawsuit against UBS, accusing it of misleading investors by “knowingly and repeatedly” providing false information about the underlying loans of the securities.
UBS sought to have the lawsuit dismissed, arguing the DOJ had not adequately demonstrated any “fraudulent intent” on the part of its employees or provided enough evidence of “deliberate illegal actions.” U.S. District Judge Margo Brodie in Brooklyn decided the case had merit, pointing to “strong circumstantial evidence of conscious misbehavior or recklessness.”
The settlement concludes all civil claims the DOJ had against the Swiss bank’s past RMBS operations in the US. UBS said the settlement amount has been fully accounted for in its provisions.
Shares of UBS Group listed in New York rose 0.7% on Monday, hitting the highest level since June 2008.
Chart: UBS Group Stock Hits June 2008 Highs
Read now: Real World Asset Launches Mortgage-Backed Stablecoin On XRP Ledger
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
